Illinois Tool Works (NYSE: ITW) sells $1.5B 4.650% notes due 2029
Rhea-AI Filing Summary
Illinois Tool Works Inc. entered into an underwriting agreement with a syndicate of underwriters, led by Citigroup Global Markets Inc. and J.P. Morgan Securities LLC, for a new debt offering. The company then issued $1.5 billion aggregate principal amount of 4.650% notes due 2029 under its automatic shelf registration on Form S-3 ASR.
The notes were issued pursuant to an existing Indenture and related supplemental documents and will mature on August 13, 2029. They bear interest at 4.650% per annum, payable semi-annually in arrears on February 13 and August 13 of each year, starting February 13, 2027. According to the prospectus, Illinois Tool Works intends to use the net proceeds primarily to repay indebtedness under its commercial paper program, with any remaining funds for general corporate purposes, including potential repayment of other outstanding debt.
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8-K Event Classification
2 items: 8.01, 9.01
2 items
Item 8.01
Other Events
Other
Voluntary disclosure of events the company deems important to shareholders but not covered by other items.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Notes Principal Amount: $1.5 billion
Coupon Rate: 4.650%
Maturity Date: August 13, 2029
+2 more
5 metrics
Notes Principal Amount
$1.5 billion
Aggregate principal amount of 4.650% notes due 2029 issued August 13, 2026
Coupon Rate
4.650%
Annual interest rate on notes due 2029
Maturity Date
August 13, 2029
Stated maturity of the 4.650% notes
First Interest Payment
February 13, 2027
First semi-annual interest payment date on the notes
Interest Payment Frequency
Semi-annually
Interest payable in arrears on February 13 and August 13 each year
Key Terms
shelf registration statement, Indenture, commercial paper program, prospectus supplement, +1 more
5 terms
shelf registration statement regulatory
"pursuant to the Company’s shelf registration statement on Form S-3 ASR"
A shelf registration statement is a document a company files with regulators that allows it to sell shares or bonds quickly when it’s a good time to raise money. It’s like having a pre-approved plan ready so the company can act fast without going through lengthy paperwork each time they want to sell, making fundraising more flexible.
Indenture financial
"The Notes were issued pursuant to an Indenture dated as of November 1, 1986"
An indenture is a legal agreement between a company that borrows money by issuing bonds and the people who buy those bonds. It explains the rules the company must follow, like paying back the money and keeping certain financial promises. This document helps both sides understand their rights and responsibilities.
commercial paper program financial
"use the net proceeds from this offering to repay a portion of the indebtedness the Company has incurred under its commercial paper program"
A commercial paper program is a formal way a company issues very short-term IOUs to raise quick cash, typically for days to months, without using a bank loan. Investors care because it shows how the company manages short-term funding and how trustworthy it appears—like watching whether someone keeps using and repaying a credit card; frequent use or higher costs can signal cash strain, while smooth issuance suggests healthy liquidity.
prospectus supplement regulatory
"the prospectus supplement dated August 11, 2026 relating thereto"
A prospectus supplement is an additional document provided alongside a company's main offering details, offering updated or extra information about a specific financial product being sold. It helps investors understand the latest terms, risks, and details of the investment, similar to how an update or revision clarifies or expands on original instructions, ensuring they have current and complete information before making a decision.
underwriting agreement financial
"entered into an underwriting agreement among the Company and the several underwriters named therein"
An underwriting agreement is a contract where a company selling new stocks or bonds hires financial firms to buy those securities and resell them to investors. It matters because the agreement sets the offering price, number of securities, fees and which party bears the risk if sales fall short—think of it as a promise that the sale will happen and a roadmap investors can use to understand how the new securities reach the market.
FAQ
What debt securities did Illinois Tool Works (ITW) issue in August 2026?
Illinois Tool Works issued $1.5 billion of 4.650% notes due 2029. These notes were sold under its Form S-3 ASR shelf registration and are governed by an existing Indenture and related supplemental documents.
What is the interest rate and payment schedule on Illinois Tool Works (ITW) 2029 notes?
The 2029 notes carry a fixed coupon of 4.650% per annum. Interest is paid semi-annually in arrears on February 13 and August 13 each year, beginning on February 13, 2027, until maturity on August 13, 2029.
When do the new Illinois Tool Works (ITW) 4.650% notes mature?
The new Illinois Tool Works notes mature on August 13, 2029. Principal will be due at maturity, with investors receiving semi-annual interest payments at a 4.650% annual rate until that date.
How will Illinois Tool Works (ITW) use the proceeds from the 2029 notes?
Illinois Tool Works intends to use the net proceeds primarily to repay indebtedness under its commercial paper program. Any remaining proceeds will go toward general corporate purposes, which may include repaying other outstanding debt.
Which banks underwrote Illinois Tool Works (ITW) 4.650% notes due 2029?
The underwriting syndicate was represented by Citigroup Global Markets Inc. and J.P. Morgan Securities LLC. They acted as representatives for the several underwriters named in the underwriting agreement dated August 11, 2026.
Under what regulatory framework were the Illinois Tool Works (ITW) 2029 notes issued?
The notes were issued under ITW’s Form S-3 ASR shelf registration (Registration No. 333-297334). The securities are described in a Base Prospectus and an August 11, 2026 prospectus supplement together referred to as the Prospectus.
AI-generated analysis. How Rhea-AI works. Not financial advice.
